Nigeria’s prominent billionaire investors and business tycoons, Aliko Dangote and Abdulsamad Rabiu, saw significant growth in their respective companies. They collectively achieved nearly N10 trillion in capital gains by the conclusion of the first quarter of March 2024.
Despite the challenging economic environment in Nigeria, characterized by a high inflation rate of 31.70% and declining consumer purchasing power, BUA Foods and Dangote Cement surpassed expectations by recording remarkable capital gains exceeding 200% when combined.
Analysis from the Nigeria Stock Exchange (NGX) highlights the resilience of these companies in navigating the tough economic conditions.
Despite the foreign exchange crisis, which led to increased import costs and persistent inflationary pressures, BUA Foods and Dangote Cement showcased robust performance and strategic foresight, contributing significantly to their impressive capital gains during Q1 2024.
Market Overview
In Q1 2024, the NGX witnessed a notable increase of 39.84%, reaching an All-Share Index of 104,562.06 points.
The market capitalization of the NGX also experienced a significant appreciation of 44.5%, closing the quarter at N59.13 trillion. This represents a remarkable increase of N18.21 trillion from the beginning of 2024 when it stood at N40.92 trillion.
Company Breakdown
Aliko Dangote
Aliko Dangote, Africa’s wealthiest individual, saw his cement company emerge as the most capitalized firm in Nigeria, boasting a valuation of N10 trillion.
Dangote Cement Plc witnessed a remarkable surge in share price, soaring by 114.7% during Q1 2024, from N319.90 to N686.70. Furthermore, the group’s market capitalization experienced a staggering appreciation of N6.25 trillion, surging from N5.45 trillion to N11.70 trillion within the same period. Dangote Cement’s dominance in the Nigerian Stock Exchange (NGX) also saw a notable increase, with its market share rising from 13.32% at the beginning of the quarter to 19.79% by the end, marking a significant uptick of 6.47 percentage points.
Abdulsamad Rabiu
Abdulsamad Rabiu, Nigeria’s second wealthiest individual, witnessed remarkable success with his company, BUA Foods, the nation’s largest consumer goods company and a key entity within the BUA Group.
In Q1 2024, BUA Foods showcased an impressive performance on the Nigerian Stock Exchange (NGX). During this period, the company’s share price experienced a significant appreciation of 96.4%, surging from N193.40 to N379.90. Additionally, BUA Foods’ market capitalization witnessed substantial growth, increasing by N3.36 trillion. By the end of the quarter, the company’s market capitalization stood at N6.84 trillion, marking a notable rise from the N3.48 trillion recorded at the beginning of the year.
